DOE, Prime Infra assess Malampaya gas-to-power facility’s condition

The Department of Energy (DOE) and Razon-led Prime Infrastructure Capital Inc. assessed the condition of the Malampaya deep water gas-to-power project to ensure its continued operations and sustainability.

In a statement, Prime Infra said the DOE together with the company and state-run Philippine National Oil Company-Exploration Corp. (PNOC-EC) performed an assessment of the Malampaya facility.

Prime Infra said it spearheaded the visit on behalf of the consortium as the new operator of Malampaya.

Prime Infra has recently completed its acquisition of the 45% operating stake in Malampaya through one of its subsidiaries, Prime Energy.

Since November 1, 2022, Prime Infra has assumed full ownership and control of Shell Philippines Exploration B.V. (SPEX) after a successful transition process for a safe and seamless handover of operations.

“The Malampaya project signaled the birth of the Philippine natural gas industry. It has not only become a symbol of the country’s journey towards energy self-sufficiency, but it has also become a symbol of national pride. Given the urgency to sustain the operations of Malampaya at a time of great energy insecurity, this visit by the DOE officials with the Prime Infra Group to the shallow water platform is timely and necessary,” said Prime Infra president and CEO Guillaume Lucci.

“We are at a critical time right now in our country’s energy transition. We aim to contribute by doing all that can be done to generate as much power as possible to keep up with the energy demands in Luzon. The most important thing to do for the company right now is to sustain and expand gas production while we address the license extension for SC (Service Contract) 8,” said Lucci.

For his part, Energy Secretary Raphael Lotilla said, “I am happy to have visited the Malampaya platform and to have met personally the all-Filipino professional team that has maintained the facility in good condition for the benefit of a generation of Filipinos. I look forward to the facility’s serving future generations of Filipinos.”

Located some 50 kilometers offshore from Palawan, the shallow water platform is the part of the facility that processes the gas that will subsequently be exported through a 504-kilometer underwater pipeline.

As one of the country’s most important power assets, the Malampaya project harnessed indigenous natural gas to reduce oil imports, contribute to better air quality, and generate significant revenues for the local government amounting to over P1 trillion.

Since 2001, Malampaya continues to power up to 20% of Luzon’s total electricity requirements.

The consortium’s license for the project is set to expire in 2024.

Lotilla earlier said he was open to looking into the possibility of extending the license for Service Contract 38 or the Malampaya gas-to-power project.

Prime Infra said is well-positioned to continue the solid track record of Malampaya.—AOL, GMA Integrated News